Landmark UK-India Trade Deal Boosts Economic Prospects

India and the UK have finalized a historic trade deal set to cut tariffs on 90% of trade lines, expected to boost the British economy by £4.8 billion annually by 2040. The agreement, concluded after high-level talks, promises significant economic benefits for both nations.

On Tuesday, India and the UK announced the successful conclusion of a historic trade agreement, which significantly reduces tariffs on 90% of trade lines, lending a transformative boost to economic ties between the two countries. The deal is predicted to contribute an additional £4.8 billion per year to the British economy by 2040.

Prime Ministers Narendra Modi and Keir Starmer finalized the Free Trade Agreement (FTA) during a 'very warm' phone call, as reported by officials. The pact is now entering the legal text formalization process, with approval pending from the British Parliament before it takes effect.

The agreement brings significant advantages to the UK, notably a halving of tariffs on Scotch whisky and reductions on automotive imports. Tariff reductions extend to medical devices, machinery, and other product lines, projected to lead India's tariff cuts to £400 million initially, doubling within a decade. This deal represents a major step forward in UK-India relations.

(With inputs from agencies.)